UAE banks roll out relief measures for residents amid rising cost pressures

Dubai: UAE banks are rolling out a series of relief measures — from free loan deferrals to zero-interest payment plans — as residents navigate mounting financial pressures amid the ongoing crisis. In return, lenders are widening support across housing, healthcare and everyday expenses.

Banks are increasingly embedding flexibility into their offerings through temporary payment relief or new financing models that ease upfront costs.

These moves come as lenders respond to tighter household budgets and rising living costs, while also seeking to sustain demand across key sectors such as property and healthcare.

Loan relief: Who is offering payment holidays?

Dubai Islamic Bank (DIB) is offering some of the most direct relief.

These offers are being rolled out for eligible frontline workers in the UAE's armed forces.

• Defer personal and auto loan instalments for up to three months

• Do so without additional profit or fees

• Access zero-fee school fee payment plans for six months

The programme targets around 25,000 customers and runs until June.

“At moments where certainty matters most, institutions have a responsibility to respond with clarity, purpose, and tangible support,” said Sanjay Malhotra, Chief Consumer Banking Officer at DIB.

0% interest, flexible payments

Banks are also expanding interest-free and flexible financing options, especially for everyday spending.

Mashreq, in partnership with Toothpick, a healthcare technology provider, now allows residents to:

• Finance dental and aesthetic treatments up to Dh150,000

• Apply and get approved digitally

• Pay over time instead of upfront

This reflects a wider shift towards “embedded finance” — where loans are built into the service you’re using.

Buying a home?

For property buyers, Emirates NBD is changing how mortgages work for off-plan homes.

Key changes:

• Buyers can secure mortgage approval at the booking stage

• Applies to projects by Meraas, Nakheel and Dubai Properties

• Reduces uncertainty in off-plan transactions

This is significant because off-plan sales now make up a large share of Dubai’s property market. The bank has partnered with Dubai Holding Real Estate to allow buyers of off-plan homes to secure mortgage approvals much earlier in the purchase process.

Under the model, financing is integrated at the booking stage across projects by Meraas, Nakheel and Dubai Properties — a shift from the traditional system where approvals typically come closer to handover.

Beyond the off-plan mortgage push, Emirates NBD has also been widening its customer offers to improve short-term affordability.

These include promotional 0 per cent interest balance transfer options on credit cards, allowing customers to consolidate existing debt and repay in instalments without additional interest for a fixed period.

The bank has also been bundling preferential rates and flexible repayment plans across select retail products.

For UAE residents, the shift is practical. You may be able to pause loan repayments temporarily or spread out large expenses with zero or low-cost instalments. You can also find access to financing earlier in big purchases, like homes

The fine print still matters — eligibility, fees after promotional periods, and approval criteria vary — but options are clearly expanding.